Cash-rich middlemen prey on tobacco farmers
Audrey Rundofa and Ropafadzo Ndangariro
Some tobacco farmers have resorted to selling their crop to middlemen who are offering instant cash. They are shunning the auction floors where banks are giving them $300 per sale.
The balance is deposited into the farmer’s bank account.
Tobacco farmers said they were being lured by instant cash and better service offered by the middlemen.
The farmers said they were aware they were being duped by middlemen.
The middlemen buy tobacco from farmers at lower prices for resale at the auction floors where they get better prices for the same crop.
Hurungwe farmer Mr Edison Machona said it was better to sell their crop to middlemen than to wait for the long process at the auction floors.
“I came to the auction floors last week and sold my crop on Friday but I am still to get my money. The money takes long to reflect and at times farmers are forced to open new bank accounts instead of using the existing ones. The other challenge is that we do not have decent accommodation,” he said.
“As we speak I have not eaten anything since yesterday and I am a sick man. I have to eat first before I take my medication. I do not know how long I am going to be here since I have not received my money.”
Mr Moses Pedro, from Karoi, said illegal buyers were more efficient in terms of giving them their money which they receive in cash instead of waiting days for their money to be processed.
“I prefer to sell my tobacco to illegal buyers because I receive my money instantly rather than waiting here for days the cash we get from the auction floors is not enough for us to pay for transport and workers back home,” he said.
Maize
Another Karoi farmer, Ms Thulisile Mangena, said she was not happy with the $300 they were getting from banks.
“I do not work alone; there are workers back home. Where do I get the cash. The workers demand cash as they do not have bank accounts.”
Other farmers are contemplating switching from tobacco to maize as the latter is now also lucrative.
The Tobacco Industry and Marketing Board ordered Class B buyers off the floors because they were fleecing farmers by offering unviable prices.
Class B buyers would buy tobacco from farmers and resale at the floors. The arrangement was meant to promote competition but the buyers later started fleecing farmers forcing TIMB to intervene
TIMB corporate communications manager Mr Isheunesu Moyo said tobacco farmers were free to open accounts with banks of their choice.
“For the purpose of expediency, a floor can encourage a farmer to open a bank account with a bank it transacts with. This is, however, not compulsory,” he said.